Bahrain

In Bahrain, petroleum production and processing account for about 60% of export receipts, 60% of government revenues, and 30% of GDP.

Petroleum and natural gas, are the only significant natural resources in Bahrain and dominate the economy, providing provide about 60% of budget revenues. Bahrain was the first Persian Gulf? state to discover crude oil. Because of limited reserves, Bahrain has worked to diversify its economy over the past decade.

Bahrain has stabilized its oil production at about 40,000 barrels per day, and reserves are expected to last 10 to 15 years. The Bahrain Oil Company? refinery? was built in 1935, has a capacity of about 250,000 barrels per day, and was the first in the Persian Gulf. After selling 60% of the refinery to the state-owned Bahrain National Oil Company in 1980, Caltex?, a U.S. company, now owns 40%. Saudi Arabia? provides most of the crude for refinery operation via pipeline. Bahrain also receives a large portion of the net output and revenues from Saudi Arabia's Abu Saafa? offshore oilfield.

The U.S. Fifth Fleet is based in Bahrain.